Banco Inter, Chainlink Complete Cross-Border CBDC Trade Pilot with Brazil, Hong Kong Central Banks

Executive Summary

Banco Inter and Chainlink, collaborating with the Central Bank of Brazil and Hong Kong Monetary Authority, successfully completed a pilot for blockchain-based cross-border trade settlement, demonstrating enhanced efficiency and reduced risk.

This initiative utilized Brazil's Drex CBDC network and Hong Kong's Ensemble platform to simulate export transaction settlements. Chainlink provided the interoperability layer, connecting the distinct blockchain environments and facilitating automated title transfers via smart contracts, addressing the primary sector and aiming to benefit SMEs.

The Event in Detail

The pilot involved Banco Inter, Chainlink, the Central Bank of Brazil (BCB), the Hong Kong Monetary Authority (HKMA), Standard Chartered, the Global Shipping Business Network (GSBN), and 7COMm. Its objective was to experiment with international trade finance processes for the primary sector, specifically targeting small and medium-sized businesses engaged in commodity exports.

Technically, the platform tested programmable Delivery-versus-Payment (DvP) and cross-border Payment-versus-Payment (PvP) transactions. These models are designed to enable conditional and installment-based payments, operating under Phase 2 of Brazil's Drex Central Bank Digital Currency (CBDC) initiative. The system simulated the settlement of exports between Brazil's Drex network and Hong Kong's Ensemble network.

Chainlink's infrastructure was critical in connecting these two distinct blockchain environments, facilitating seamless fund and asset record transfers across jurisdictions in a single automated workflow. Concurrently, GSBN was responsible for recording the change in title registry of the electronic Bill of Lading (eBL) throughout the payment process. This collaboration marked the first instance where a blockchain-based title registry was integrated with a cross-chain payment infrastructure via a single, automated workflow.

Bruno Grossi, Head of Digital Assets at Banco Inter, stated, "Banco Inter is leveraging Chainlink to connect the BCB, the HKMA, and trade finance platforms to build a more connected financial ecosystem."

Market Implications

This pilot project demonstrates the potential for significant advancements in international trade finance. By leveraging blockchain technology and CBDCs, the initiative aims to reduce transaction costs, minimize operational risks, and improve coordination across the global trade ecosystem. The automation of title transfers via smart contracts and the enablement of programmable payments contribute to greater efficiency and transparency.

For Small and Medium-sized Enterprises (SMEs), the implications are particularly salient. The system is designed to lower costs and reduce risk, potentially opening international markets that were previously difficult to access. Tokenized funds, as seen in similar studies, can offer near-instant settlements and substantially lower transaction fees, which is highly beneficial for SMEs involved in cross-border transactions, simplifying supplier payments and revenue collection from overseas. The 24/7 transaction capability inherent in blockchain-based systems also allows SMEs to manage cash more effectively and respond rapidly to market shifts.

The findings align with broader industry discussions, such as a study by members of the US financial services sector. This study successfully simulated domestic interbank and cross-border payments using shared ledger technology, identifying its potential to support payment innovation by delivering settlement finality, a common source of truth, standard transaction data, and privacy. The study concluded that a global, near-real time, 24/7 dollar payment system could be delivered through the Regulated Liability Network (RLN) concept, a theoretical payment infrastructure for regulated digital assets.

Broader Context and Strategic Alignment

The collaboration between Banco Inter, Chainlink, and the central banks of Brazil and Hong Kong fits within a growing global trend toward modernizing financial infrastructure through blockchain and digital assets. Central bank digital currency initiatives, such as Brazil's Drex project, are actively exploring how CBDCs can enhance financial systems.

In Hong Kong, the Hong Kong Monetary Authority (HKMA) has positioned tokenization as a core pillar of its Fintech 2030 strategy. The HKMA's Project Ensemble specifically aims to pilot real-value transactions using e-HKD, tokenized deposits, and regulated stablecoins for settling tokenized assets. The HKMA is in discussions with counterparts in Brazil and Thailand to deploy blockchain and tokenization for cross-border trade finance, with explicit goals of reducing transaction costs and accelerating settlement times using distributed ledger technology.

Chainlink's involvement underscores its strategic role as an interoperability layer in the burgeoning multi-chain ecosystem. Its Cross-Chain Interoperability Protocol (CCIP) enables secure and permissionless movement of assets and data between disparate blockchain networks, making it a critical component for connecting various CBDC initiatives and enterprise blockchain platforms. This positioning allows it to serve as canonical cross-chain infrastructure, expanding reach and liquidity across different Web3 ecosystems.

This pilot represents a tangible step toward a more integrated and efficient global financial system, demonstrating the practical application of advanced blockchain technology in traditional financial domains like trade finance. It highlights the strategic alignment of financial institutions and central banks in leveraging distributed ledger technology to overcome existing cross-border payment frictions and enhance market accessibility.